Coming from someone who's a bit anal about computer terminologies, there's nothing wrong with calling the hard drive "memory". It's only recent convention that has volatile memory (RAM, etc) referred to as "memory" while non-volatile memory (hard drive, CD, tape, etc) is referred to as "storage".
By the way, 64-bit Windows versions can handle 160GB of RAM. Theoretically, 64-bit operating systems should be able to handle 16 exabytes of RAM, assuming my calculations are correct.
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